Palantir (NASDAQ: PLTR) stock seems to be regaining its bullish trend. The equity is now targeting reclaiming the $100 mark as an artificial intelligence (AI) tool projects sustained gains in the coming weeks.
PLTR closed the March 14 trading session up 8.3% at $86, capitalizing on the broader technology sector rally. In the weekly timeframe, the American software giant gained almost 5.7%, ending a three-week losing streak for the AI stock.
Palantir stock price fundamentals
Beyond the impact of the general market recovery, Palantir surged after announcing a strategic partnership with Databricks, an AI and data analytics firm backed by Nvidia (NASDAQ: NVDA).
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The collaboration, unexpected given their competitive history, aims to integrate Palantir’s AI-powered operating system with Databricks’ data engineering and analytics platform.
The move is particularly notable as Databricks-powered Advana has been a key rival to Palantir in securing U.S. Department of Defense contracts. Analysts view this partnership as a major positive, expanding both companies’ market reach in AI-driven decision-making.
Although Palantir’s stock has generally remained impressive, lingering questions persist about whether it is worthwhile. The stock has tumbled nearly 40% from its all-time high of $125; key indicators suggest potential trouble ahead.
For instance, while Palantir’s AI-powered analytics have clear synergies with generative AI, its revenue growth has slowed from 47% in 2020 to 29% in 2024. In contrast, top AI leaders like Nvidia have seen their revenue skyrocket.
Adding to the uncertainty, the new U.S. administration is poised to cut defense spending, which threatens nearly half of Palantir’s revenue. As a key DoD contractor, such a cut could have a massive impact on PLTR stock.
At the same time, with a sky-high valuation of 135x forward P/E, some analysts remain concerned that the stock might crash if the company fails to meet growth expectations. Notably, Jefferies has warned that PLTR could drop to $60, citing valuation concerns as a key risk factor.
In contrast, Wedbush Securities remains bullish on PLTR, stating that the company is likely to lead the software AI space. Analyst Dan Ives even calls it the “Messi of AI.”
Another emerging concern is insider selling activity, which some analysts view as a bearish signal that could indicate potential headwinds in the short term. One of the latest transactions involved President Stephen Andrew Cohen, who sold over $310 million in shares between March 12 and 14, 2025, under a pre-planned trading plan.
DeepSeek AI predicts PLTR stock price for April 1
Amid these mixed fundamentals, DeepSeek AI’s R1 model forecasts a possible bullish run for PLTR by April 1, potentially reaching a new record high.
According to the AI model, Palantir’s upside rally depends on strategic partnerships, AI leadership, and defense contracts. However, DeepSeek cautioned that bearish elements, such as slowing revenue growth, potential cuts in U.S. defense spending, and high valuation concerns, cannot be ignored.
To this end, DeepSeek AI outlined two possible scenarios: a bullish case where PLTR surges between $120 and $130 if market confidence remains strong and a bearish case where the stock tumbles to $60 and $70 if revenue slows and valuations correct.
Despite these uncertainties, the AI model’s base case targets $110, assuming moderate growth, successful initiatives, and stable market conditions.
In conclusion, although Palantir presents a mixed outlook ,the stock’s sustained growth hinges on justifying its high valuation through AI leadership and steady revenue growth.
Featured image via Shutterstock
